- Airtel Uganda, a telco in the country, has revealed plans to sell the remaining shares from its undersubscribed initial public offering (IPO) to meet regulatory requirements.
- In 2023, the telco sold just 54.45% of the 8 billion shares in an initial public offering meant to raise USh800 billion ($216.22 million).
- Uganda's broadband policy requires telecommunications companies to publicly list at least 20% of their equity on the local stock exchange.
David Birungi, the telco's spokesperson, emphasised the company's commitment to adhere to the national regulations, stating they plan to achieve compliance by November 2026, within a two-year timeframe.
The IPO forms a part of the telco’s strategy to bolster its financial position and extend its operations across the country. Through the funds raised from the IPO, the company intends to upgrade its network infrastructure, improve service quality, and introduce innovative products to meet the evolving needs of its customers.
In March 2024, the telco declared a final dividend of USh86 billion ($22 million) after reporting a 9.6% decline in profit for the year ended December 2023. Its total revenues grew by 11.5% to Ush1.7 trillion ($455 million), due to positive performance in its core voice and data business.
The telco shared that it “achieved considerable growth in 2023, surpassing expectations with gross revenue of Ushs 1,784 billion, a remarkable 11.5 per cent increase compared to Ushs 1,599 billion in 2022.”
With over 14 million active subscribers spread across 146 districts in Uganda, Airtel Uganda became the second telecommunications company listed on the Ugandan stock exchange following MTN Uganda, which is majority-owned by the South African MTN Group and was listed in December 2021.
Airtel, which entered the Ugandan market as Celtel Uganda in 1995, was the country’s pioneer mobile cellular network and has grown swiftly.
In June 2024, its major competitor, MTN Uganda, reported that demand for the remaining shares from its 2021 Initial Public Offering exceeded expectations by nearly 100%.it received applications for 3 billion shares against 1.6 billion shares on offer. The shares sold represent 7.03% of the company's total equity.